AmeriCredit Fiscal 3Q Profit Rises

Americredit Corp. announced net income of $104 million, or $0.80 per share, for its fiscal third quarter ended March 31, 2007. AmeriCredit reported net income of $87 million, or $0.60 per share, for the same period a year earlier. For the nine months ended March 31, 2007, AmeriCredit reported net income of $273 million, or $2.06 per share, versus earnings of $227 million, or $1.53 per share, for the nine months ended March 31, 2006. Operating results for the three and nine months ended March 31, 2007, included Bay View Acceptance Corporation, acquired on May 1, 2006, and Long Beach Acceptance Corp. since its acquisition on January 1, 2007.

Net income for the three months ended March 31, 2007, included a $10 million after-tax gain ($16 million pre-tax), or $0.08 per share, related to the sale of AmeriCredit’s investment in DealerTrack Holdings, Inc., and a $21 million, or $0.16 per share, adjustment to reserves for contingent tax positions. Net income for the nine months ended March 31, 2007 and 2006, included a $33 million after-tax gain ($52 million pre-tax), or $0.25 per share, and a $6 million after-tax gain ($9 million pre-tax), or $0.04 per share, respectively, related to the sale of AmeriCredit’s investment in DealerTrack Holdings, Inc.

Automobile finance originations increased to $2.52 billion for the third quarter of fiscal year 2007, compared to $1.61 billion for the same period last year. Origination volume for the nine months ended March 31, 2007, was $5.94 billion compared to $4.47 billion for the same period a year earlier. Managed receivables totaled $15.15 billion at March 31, 2007, compared to $11.13 billion at March 31, 2006.

Annualized net charge-offs totaled 4.6% of average managed receivables for the March 2007 quarter compared to 5.2% for the March 2006 quarter. For the nine months ended March 31, 2007, annualized net charge-offs were 5.2% compared to 5.6% for the same period last year.

Managed auto receivables 31-to-60 days delinquent were 4.1% of the portfolio at March 31, 2007, compared to 4.7% at March 31, 2006. Accounts more than 60 days delinquent were 1.5% of the portfolio at March 31, 2007, compared to 1.6% at March 31, 2006.

"Our strong origination volume and improved credit results this quarter reflected both the normal seasonal lifts and the impact of our transition to full-spectrum lending. Full-spectrum lending provides an opportunity to efficiently originate an optimal mix of business and positions us to continue to grow our business, manage credit volatility and generate solid returns for our shareholders," said President and Chief Executive Officer Dan Berce.